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I.
Corporate Fund Financial Statement Results -
Second Quarter 2005
BIF
- For the six months ending June 30, 2005, BIF’s comprehensive
income was $307 million compared to $328 million for the same six-month
period last year. This year-over-year decrease of $21 million is due to a
decrease
of $23 million in unrealized gains on available-for-sale securities (caused
by a rise in Treasury yields) that was partially offset by a slight increase
in net income of $2 million. The BIF balance stood at $35.1 billion as
of June 30, 2005.
- For
the six months ending June 30, 2005, BIF’s provision for insurance
losses was a negative $52 million. This decline can be attributed primarily
to a downward adjustment to the estimated allowance for losses for
four failed bank receiverships.
- The
BIF contingent liability for future failures stands at $2 million as
of June 30, 2005, approximately $6 million less than at the beginning
of 2005. This reduction is a result of a combination of fewer institutions
on the contingent loss reserve list and lower failure probability assumptions
for those institutions that remain on the list.
SAIF
- For the six months ending June 30, 2005, SAIF’s comprehensive
income was $209 million, compared to $171 million for the same six-month period
last year. This increase of $38 million is the result of a $47 million increase
in net income that was partially offset by a $9 million reduction in unrealized
gains on available-for-sale securities. The increase in SAIF’s net income
primarily resulted from an increase in interest revenue on U.S. Treasury obligations
of $29 million and a reduction in the provision for estimated insurance losses
of $23 million. The SAIF fund balance stood at $12.9 billion at June 30, 2005.
- The
SAIF contingent liability for future failures stands at $1
million for the quarter ending June 30, 2005, which is a decrease
of $9 million
from the $10 million level at March 31, 2005. Similar to the
BIF, this decrease is due primarily to a reduction of the number
of institutions
on the contingent loss reserve list.
FRF
- During the quarter ending June 30, 2005, there was one Goodwill
settlement for $1million which was $22.6 million less than what the plaintiff
was seeking. While the FRF reimburses the U.S. Department of Justice for reasonable
defense-related costs incurred in defending the U.S Government in these Goodwill
cases, actual judgments and/or settlement amounts paid to plaintiffs are funded
by the U.S. Treasury through a separate, indefinite appropriation account.
- During the quarter ending June 30, 2005, two former
Resolution Trust Corporation (RTC) receiverships were terminated.
There are now 33 FRF-RTC receiverships remaining.
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